Stanley Black & Decker has agreed to buy Niscayah, a European electronic security and monitoring company for $1.2 billion, including assumed debt. Stanley will pay $18.00 per share in cash (in Swedish currency) for the Stockholm-based company, 24% more than an all-stock offer by another firm, Securitas AB, and a 15% premium to Niscayah's stock price at close on June 23, 2011.
With estimated 2011 revenue of approximately USD$1 billion, Niscayah is one of the world's leading commercial security and monitoring companies and one of the largest access control and surveillance solutions providers in Europe. Niscayah's integrated security solutions include video surveillance, intrusion alarms and fire alarm systems, and its offerings include design and installation services, maintenance and repair, and monitoring systems.
The proposed acquisition would expand and complement Stanley Black & Decker's existing security product offerings and further diversify the company's operations and international presence. Niscayah's business is well diversified across northern, central and southern Europe and the Nordic Region, as well as in the United States. Stanley Black & Decker's existing Convergent Security Solutions (CSS) business revenues are approximately $800 million, of which Europe represents about $300 million.
The acquisition would be funded with Stanley Black & Decker's existing offshore cash resources with no additional debt or equity issuances, the New Britain, Conn.-based company said in its announcement.
The offer is subject to customary conditions for a public offer in Sweden, including antitrust approvals and the acceptance of the offer to such an extent that Stanley Black & Decker becomes the owner of more than 90% of the total number of shares in Niscayah. The transaction is expected to close in September 2011.